Upton: “The reports underscore the perils of the administration’s incompetence, the reckless rollout, and the systemic disregard for taxpayer dollars.”

July 1, 2014

WASHINGTON, DC – House Energy and Commerce Committee Chairman Fred Upton (R-MI) issued the following statement today regarding two new reports from the Department of Health and Human Services Office of the Inspector General detailing concerns surrounding eligibility verification for those purchasing health care plans through the exchanges. Nearly one year ago, the administration quietly announced on Friday, July 5, 2013, that it was abandoning the verification process for the exchanges, opting instead for an ‘honor system.’

“Sadly, the most consistent part of the health law’s implementation has been the millions of ‘inconsistencies’ without a system in place to address them,” commented Upton. “Vital portions of the exchanges still sit incomplete, generating serious questions about the system’s ability to process inconsistencies or handle next year’s open enrollment period. The reports underscore the perils of the administration’s incompetence, the reckless rollout, and the systemic disregard for taxpayer dollars.”

Key findings:

  • HHS OIG found that through February 2014 there were 2.9 million inconsistencies, 2.6 million of which had not yet been addressed. 1 million of these were related to income.
  • NOTE: Documents released by the committee found that there were at least 4 million inconsistencies as of May 27. 
  • The administration did not have effective controls in place to perform basic tasks, such as validating Social Security numbers, performing identify proofing, and verifying citizenship and other sources of coverage.
  • California’s exchange failed to resolve inconsistencies regarding citizenship or lawful presence.

Click to read the reports “Not All Internal Controls Implemented by the Federal, California, and Connecticut Marketplaces Were Effective in Ensuring That Individuals Were Enrolled in Qualified Health Plans According to Federal Requirements” and “Marketplaces Faced Early Challenges Resolving Inconsistencies With Applicant Data” released today. 

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